Ashurst advises financial investor Odewald & Compagnie and its portfolio company Oystar in restructuring negotiations

22 December 2009

Ashurst advised packaging machinery manufacturer, Oystar, a portfolio company of Berlin-based private equity house,  Odewald & Compagnie, on the restructuring of its liabilities.

At the beginning of the restructuring discussions, the Oystar Group reached a standstill agreement with a syndicate of banks and subordinated lenders, in order to develop a long-term restructuring concept together with Odewald & Compagnie. During the standstill period, which was extended several times, KPMG provided an expert opinion on restructuring needs and, based upon which Roland Berger created a restructuring proposal. On the basis of KPMG's  opinion and this proposal, Odewald & Compagnie, the Oystar Group and the senior and mezzanine lenders finally agreed on a concept to restructure the existing liabilities. The agreed proposal provides, inter alia, for the provision of further liquidity by Odewald & Compagnie.

Ashurst advised both the Oystar Group and Odewald & Compagnie during the restructuring negotiations. On the financing side, international finance partner Dr Bernd Egbers from Ashurst Munich led and was responsible for coordinating all lawyers involved in advising the borrowers and the sponsors side. He was assisted by  associates Richard Schulze-Muth and Simon Stadtmann. Dr Egbers and his team moved from Frankfurt to the Munich office at the beginning of May this year, in order to establish a loan markets presence there and to continue building up relationships with private equity investors and banks.

Corporate partner Dr Ingo Scholz and associate Dr Yorck Graf von Pfeil advised from Ashurst's restructuring team in Frankfurt. The comprehensive finance and corporate team was supported by the paralegals Carina Bechstedt and Dominique Blaurock.

Ashurst further assisted the restructuring in Spain, France and the UK with support from Madrid international finance partner Jose Christian Bertram and associate Vanesa Piñeiro, Paris international finance partner James Collis and associate Daniela Kotzeva, as well as Paris corporate associates Anne Reffay and Delphine Guérin, London international finance partner Mark Vickers and associate Navdeep Benning as well as London corporate partner Matt McDonald.

Furthermore, in the USA partner David A. Lander (Thompson Coburn LLP) and partner Steven R. Rutkovsky with associate Pamela Hanson (Ropes & Gray LLP) worked in situ as legal advisers to the companies.

Ashurst has been advising Odewald & Compagnie for many years and has assisted the group on a number of transactions, inlcuding on financing its initial acquisition of the Oystar Group in 2007.

Odewald & Compagnie invests in established and strongly growing mid-sized companies in German-speaking countries and neighboring economies within the framework of private equity transactions. Investors include insurance companies, banks, pension funds and asset management companies here and abroad.

The Oystar Group is one of the world's leading providers of process technology, packaging equipment and technology, and corresponding services. Oystar also possesses extensive know-how in the key areas of dairy products, foodstuffs, pharmaceuticals, and cosmetics. This expertise forms the basis for the Oystar group companies' specialization in optimizing, designing, and constructing whole packaging machinery lines.

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